Question

Why is integration occurring in the healthcare industry? What forms of integration are occurring in the healthcare industry? What is the relationship between integrated entities and managed care? What is the risk of increased integration?

Answer 1

Integration occuring in the healthcare to give more and improved services and to get more benifits

There are mainly two types of integration, horizontal and vertical. Horizontal integration occurs when individual physicians join group practices or existing groups merge with each other. But vertical integration is an arrangement whereby this offers either dirctldidor throughothers abroad range of patient care and support services.

The managed health care industry is described as a variety of techniques intended to reduce the cost of providing health benefits and improve the quality of care, in other words it is the health insurance industry. Compared with other sub- industries within the healthcare sector, managed healthcare has a higher rate of growth. As the healthcare act reform requires that everyone be insured, it is a great opportunity for insurance companies.

But these increased integration facing lot of risk nowadays. Hospitals are feeling the pressure of inpatient volumes and reimbursement levels from government payers along with rising drug costs and labor expenses, as well as regulatory charges to policies.